What Does Motorcycle Insurance Actually Cover?

Motorcycle insurance serves as a financial safeguard for riders, protecting against unforeseen events on the road. It provides coverage for potential damages, injuries, and liabilities that can arise from operating a motorcycle. Most states require a minimum level of motorcycle insurance to legally operate a vehicle, ensuring a baseline of financial responsibility for all riders. An insurance policy helps mitigate significant financial burdens that could result from an accident or other incidents.

Liability Protection

Liability coverage protects the insured when they are at fault in an accident. This coverage addresses damages or injuries caused to other parties, not to the insured rider or their motorcycle. It is divided into two main categories: bodily injury liability and property damage liability.

Bodily Injury Liability offers financial protection for medical expenses and lost wages incurred by others if the insured causes an accident that results in their injury or death. This coverage can also help pay for legal fees if the injured party decides to file a lawsuit. For instance, if an accident you cause leads to another driver’s hospitalization, bodily injury liability would contribute to their medical bills. Most states mandate a minimum amount of this coverage.

Property Damage Liability covers the costs associated with damage the insured causes to another person’s property in an accident. This can include repairs to other vehicles, structures like fences or mailboxes, or even commercial buildings. For example, if your motorcycle collides with another vehicle and damages it, property damage liability would help cover the repair or replacement costs for that vehicle. While state minimums exist for this coverage, the actual cost of repairs or replacement for damaged property can quickly exceed these amounts.

Physical Damage Coverage for Your Motorcycle

Motorcycle insurance also protects the insured’s own motorcycle from various types of damage. These include collision and comprehensive coverage. Both of these coverages involve a deductible, which is the amount the insured pays out of pocket before the insurance company begins to cover the remaining costs of a claim. For example, if a repair costs $2,000 and your deductible is $500, you would pay the first $500, and the insurer would cover $1,500.

Collision coverage helps pay for repairs or replacement of the insured’s motorcycle if it is damaged in a collision with another vehicle or object, such as a tree, fence, or guardrail, regardless of who is at fault. This coverage also applies if the motorcycle is damaged from an upset, like falling over or sliding out. If the motorcycle is deemed a total loss, collision coverage pays the fair market value of the bike, minus the chosen deductible.

Comprehensive coverage protects the insured’s motorcycle from non-collision incidents. This includes damages resulting from events like theft, vandalism, fire, natural disasters such as hailstorms or floods, and collisions with animals. If a tree falls on your parked motorcycle or it is stolen, comprehensive coverage would help cover the repair or replacement costs.

Custom parts and accessories coverage is for motorcycle owners who personalize their bikes. Standard collision and comprehensive policies cover only the factory-installed parts of a motorcycle. To protect aftermarket additions like custom paint, chrome pieces, specialized wheels, or upgraded electronics, riders can add specific custom parts and equipment (CPE) coverage. This add-on ensures that the financial investment in these unique modifications is protected in the event of damage or loss.

Additional Protective Coverages

Several other optional coverages provide more extensive protection for motorcycle riders. These coverages address specific situations and can offer financial relief beyond standard liability and physical damage policies.

Uninsured/Underinsured Motorist (UM/UIM) coverage protects if the insured is involved in an accident with a driver who has no insurance or insufficient insurance. This coverage can help pay for the insured’s medical bills, lost wages, and in some instances, property damage to their motorcycle.

Medical Payments (MedPay) or Personal Injury Protection (PIP) cover medical expenses for the insured rider and their passengers, regardless of who was at fault in an accident. MedPay covers reasonable and necessary medical expenses like ambulance rides and X-rays. PIP can extend to cover additional costs such as lost income, funeral expenses, or childcare if the insured is injured in an accident.

Roadside Assistance coverage provides services if the motorcycle becomes inoperable due to a breakdown or accident. This includes towing the motorcycle to a repair facility, assistance with flat tires, fuel delivery if the bike runs out of gas, or jump-starting a dead battery.

Rental Reimbursement coverage helps pay for a rental vehicle if the insured’s motorcycle is damaged or totaled in a covered claim and is unusable. Policy limits for rental reimbursement include a daily maximum and an overall maximum amount.

Gap Coverage, also known as Guaranteed Asset Protection, is for those who finance their motorcycle. This coverage addresses the difference between the actual cash value of the motorcycle at the time of a total loss (due to theft or an accident) and the outstanding balance remaining on the loan or lease. Since motorcycles depreciate over time, the insurance payout for a totaled bike might be less than what is still owed on the loan. Gap coverage bridges this financial shortfall, preventing the insured from owing money on a motorcycle they no longer possess.